Eli Lilly's Growing Drug Portfolio Boosts Sales Beyond GLP-1
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
0mins
Should l Buy LLY?
Source: NASDAQ.COM
Eli Lilly's Stock Performance: Eli Lilly's stock reached over $1000 per share for the first time, driven by the success of its GLP-1 drugs, Mounjaro and Zepbound, and is approaching a $1 trillion market cap.
New Drug Approvals and Revenue Growth: The company has gained approvals for several new drugs, including Omvoh and Jaypirca, contributing significantly to revenue growth, with expectations for continued sales increases from these products in 2026.
M&A Strategy for Long-Term Growth: To diversify its portfolio beyond GLP-1 drugs, Lilly is pursuing mergers and acquisitions, including the recent agreement to acquire Adverum Biotechnologies, which will enhance its pipeline with gene therapies.
Competitive Landscape and Valuation: While Lilly's stock has outperformed the industry, it is considered expensive based on its price/earnings ratio, and analysts have raised earnings estimates for 2025 and 2026, indicating positive market sentiment.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LLY is 1192 USD with a low forecast of 950.00 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1020.840
Low
950.00
Averages
1192
High
1500
Current: 1020.840
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, markets, and sells pharmaceutical products worldwide. Its cardiometabolic health products include Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound; VERVE-102; VERVE-201, and VERVE-301. Its oncology products include Cyramza, Erbitux, Tyvyt, and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. The Company is also engaged in radiopharmaceutical discovery, development, and manufacturing efforts, and clinical and pre-clinical radioligand therapies in development for the treatment of cancer. It is also developing an oral small molecule inhibitor of a4b7 integrin for inflammatory bowel disease (IBD). It is evaluating its novel gene therapy candidate, ixoberogene soroparvovec.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eli Lilly Analyst Raises Price Target to $1,300
- Strong Earnings Beat: Eli Lilly reported sales of $19.292 billion and earnings of $7.54 per share, exceeding consensus estimates of $17.944 billion and $6.91 per share, indicating robust market performance and profitability.
- Sales Growth Highlights: Zepbound sales reached $4.261 billion, surpassing Street expectations of $3.880 billion, while Mounjaro sales stood at $7.409 billion, also beating the consensus of $6.820 billion, reflecting strong product demand.
- Optimistic Future Outlook: Management guided for 2026 sales of $80-$83 billion and earnings per share of $33.50-$35.00, higher than consensus estimates of $77.64 billion and $33.04, showcasing the company's growth potential.
- Prominent Growth Profile: The analyst noted that Eli Lilly has the best growth profile in their coverage universe, with projected top-line growth of approximately 20% and bottom-line growth of around 40% by 2026, establishing a clear runway for sustained growth into the next decade.
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Analysis of Risks and Opportunities in Healthcare Stock Investment
- Valuation Insights: While the healthcare sector's forward P/E ratio stands at 18.7, lower than the S&P 500's 22.2, Eli Lilly's high P/E of 30.6 indicates market over-optimism about its growth, significantly increasing investment risk.
- Market Dynamics: Viking Therapeutics' stock fell by 8.6% following disappointing clinical trial results in late 2025, serving as a cautionary tale for investors considering buying at the peak popularity of stocks in the healthcare sector.
- Policy Impact Assessment: The implementation of drug price negotiations mandated by the Inflation Reduction Act in 2026 could pressure drugmakers' margins, making it essential for investors to monitor how such policy changes might affect healthcare revenues.
- Funding Flow Mechanism: In the U.S., healthcare funding comes from a mix of private insurance, public payers, and out-of-pocket spending, and understanding these funding flows and their potential shifts is crucial for investment decisions, especially in a changing policy landscape.
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Eli Lilly's Stock Soars 225%, Attracting Attention
- Eli Lilly's Strong Performance: Eli Lilly's stock has surged 225% over the past three years, significantly outperforming the S&P 500's 66% gain, indicating robust market performance and investor confidence.
- Novo Nordisk's Market Challenge: Although Novo Nordisk was first to market with a GLP-1 weight-loss drug, Eli Lilly's offerings have been better received, resulting in a 66% drop in Novo Nordisk's stock from its 2024 highs, highlighting competitive pressures.
- Medtronic's Business Restructuring: Medtronic plans to spin off its diabetes business in 2026; despite rapid growth in this division, its lower margins compared to other operations suggest that the spinoff will enhance overall profitability and growth potential.
- Future Growth Potential: Eli Lilly's past success does not guarantee future dominance, as Novo Nordisk's GLP-1 pill could revitalize its sales, while Medtronic's restructuring may unlock higher growth opportunities.
See More
Eli Lilly's Stock Soars 225% Amid Market Dynamics
- Eli Lilly's Strong Performance: Eli Lilly's stock (NYSE: LLY) has surged 225% over the past three years, significantly outperforming the S&P 500's 66% gain, reflecting robust market performance and investor confidence.
- GLP-1 Market Competition: While Eli Lilly excels in the GLP-1 drug sector, competitor Novo Nordisk (NYSE: NVO) is also launching new GLP-1 medications, which are expected to attract more consumers and drive long-term market growth.
- Medtronic's Strategic Shift: Medtronic (NYSE: MDT) plans to spin off its diabetes division in 2026; although this segment has been growing rapidly, it has lower margins, and the spinoff is expected to enhance overall profitability and accelerate company growth.
- Future Outlook: Despite Eli Lilly's past successes, future market competition remains fierce, with Novo Nordisk's GLP-1 drugs and Medtronic's business restructuring potentially reshaping the industry landscape, prompting investors to carefully assess risks and opportunities.
See More
Tech Sector Rebound Fails to Offset Weekly Losses
- Nasdaq Rebound: The Nasdaq gained over 2% on Friday, yet still posted a 1.8% decline for the week, indicating ongoing investor concerns about tech stocks and the need to monitor future market trends.
- Dow Hits All-Time High: The Dow surged more than 1,200 points on Friday, closing at 50,115 with a weekly gain of 2.5%, reflecting a shift of funds from growth to value stocks, which may influence future investment strategies.
- Surge in Capital Expenditures: Alphabet announced that its capital expenditures for 2026 could exceed double the previous year, and despite a 0.5% drop in shares on Thursday, market confidence in its AI investments remains strong, signaling expectations for future growth.
- Software Stocks Crushed: Software stocks faced significant declines due to fears of AI encroaching on traditional SaaS companies, leading to pressure on the entire tech sector, prompting investors to remain vigilant about potential risks and opportunities within the industry.
See More
Caution Required for Healthcare Stocks in 2026
- High Valuations: While the healthcare sector's forward P/E is 18.7, Eli Lilly's forward P/E stands at 30.6, indicating excessive market optimism about its growth, thus increasing investment risks.
- Demand and Pressure: Healthcare demand remains relatively stable during economic slowdowns, but high inflation and slowing growth may lead to political pressures that could alter drug pricing and reimbursement policies, impacting revenues and earnings.
- Stability of Payment System: The U.S. healthcare payment system, comprising private insurance, public payers, and out-of-pocket spending, is not expected to change fundamentally in 2026; however, the implementation of drug price negotiations could pressure drugmakers' margins.
- Cautious Investment: Understanding how a business generates revenue and the potential legal or policy changes that could affect profitability is crucial for investors considering healthcare stocks, to avoid blindly following trends at market peaks.
See More
Eli Lilly Analyst Raises Price Target to $1,300
- Strong Earnings Beat: Eli Lilly reported sales of $19.292 billion and earnings of $7.54 per share, exceeding consensus estimates of $17.944 billion and $6.91 per share, indicating robust market performance and profitability.
- Sales Growth Highlights: Zepbound sales reached $4.261 billion, surpassing Street expectations of $3.880 billion, while Mounjaro sales stood at $7.409 billion, also beating the consensus of $6.820 billion, reflecting strong product demand.
- Optimistic Future Outlook: Management guided for 2026 sales of $80-$83 billion and earnings per share of $33.50-$35.00, higher than consensus estimates of $77.64 billion and $33.04, showcasing the company's growth potential.
- Prominent Growth Profile: The analyst noted that Eli Lilly has the best growth profile in their coverage universe, with projected top-line growth of approximately 20% and bottom-line growth of around 40% by 2026, establishing a clear runway for sustained growth into the next decade.
See More
Analysis of Risks and Opportunities in Healthcare Stock Investment
- Valuation Insights: While the healthcare sector's forward P/E ratio stands at 18.7, lower than the S&P 500's 22.2, Eli Lilly's high P/E of 30.6 indicates market over-optimism about its growth, significantly increasing investment risk.
- Market Dynamics: Viking Therapeutics' stock fell by 8.6% following disappointing clinical trial results in late 2025, serving as a cautionary tale for investors considering buying at the peak popularity of stocks in the healthcare sector.
- Policy Impact Assessment: The implementation of drug price negotiations mandated by the Inflation Reduction Act in 2026 could pressure drugmakers' margins, making it essential for investors to monitor how such policy changes might affect healthcare revenues.
- Funding Flow Mechanism: In the U.S., healthcare funding comes from a mix of private insurance, public payers, and out-of-pocket spending, and understanding these funding flows and their potential shifts is crucial for investment decisions, especially in a changing policy landscape.
See More
Eli Lilly's Stock Soars 225%, Attracting Attention
- Eli Lilly's Strong Performance: Eli Lilly's stock has surged 225% over the past three years, significantly outperforming the S&P 500's 66% gain, indicating robust market performance and investor confidence.
- Novo Nordisk's Market Challenge: Although Novo Nordisk was first to market with a GLP-1 weight-loss drug, Eli Lilly's offerings have been better received, resulting in a 66% drop in Novo Nordisk's stock from its 2024 highs, highlighting competitive pressures.
- Medtronic's Business Restructuring: Medtronic plans to spin off its diabetes business in 2026; despite rapid growth in this division, its lower margins compared to other operations suggest that the spinoff will enhance overall profitability and growth potential.
- Future Growth Potential: Eli Lilly's past success does not guarantee future dominance, as Novo Nordisk's GLP-1 pill could revitalize its sales, while Medtronic's restructuring may unlock higher growth opportunities.
See More
Eli Lilly's Stock Soars 225% Amid Market Dynamics
- Eli Lilly's Strong Performance: Eli Lilly's stock (NYSE: LLY) has surged 225% over the past three years, significantly outperforming the S&P 500's 66% gain, reflecting robust market performance and investor confidence.
- GLP-1 Market Competition: While Eli Lilly excels in the GLP-1 drug sector, competitor Novo Nordisk (NYSE: NVO) is also launching new GLP-1 medications, which are expected to attract more consumers and drive long-term market growth.
- Medtronic's Strategic Shift: Medtronic (NYSE: MDT) plans to spin off its diabetes division in 2026; although this segment has been growing rapidly, it has lower margins, and the spinoff is expected to enhance overall profitability and accelerate company growth.
- Future Outlook: Despite Eli Lilly's past successes, future market competition remains fierce, with Novo Nordisk's GLP-1 drugs and Medtronic's business restructuring potentially reshaping the industry landscape, prompting investors to carefully assess risks and opportunities.
See More
Tech Sector Rebound Fails to Offset Weekly Losses
- Nasdaq Rebound: The Nasdaq gained over 2% on Friday, yet still posted a 1.8% decline for the week, indicating ongoing investor concerns about tech stocks and the need to monitor future market trends.
- Dow Hits All-Time High: The Dow surged more than 1,200 points on Friday, closing at 50,115 with a weekly gain of 2.5%, reflecting a shift of funds from growth to value stocks, which may influence future investment strategies.
- Surge in Capital Expenditures: Alphabet announced that its capital expenditures for 2026 could exceed double the previous year, and despite a 0.5% drop in shares on Thursday, market confidence in its AI investments remains strong, signaling expectations for future growth.
- Software Stocks Crushed: Software stocks faced significant declines due to fears of AI encroaching on traditional SaaS companies, leading to pressure on the entire tech sector, prompting investors to remain vigilant about potential risks and opportunities within the industry.
See More
Caution Required for Healthcare Stocks in 2026
- High Valuations: While the healthcare sector's forward P/E is 18.7, Eli Lilly's forward P/E stands at 30.6, indicating excessive market optimism about its growth, thus increasing investment risks.
- Demand and Pressure: Healthcare demand remains relatively stable during economic slowdowns, but high inflation and slowing growth may lead to political pressures that could alter drug pricing and reimbursement policies, impacting revenues and earnings.
- Stability of Payment System: The U.S. healthcare payment system, comprising private insurance, public payers, and out-of-pocket spending, is not expected to change fundamentally in 2026; however, the implementation of drug price negotiations could pressure drugmakers' margins.
- Cautious Investment: Understanding how a business generates revenue and the potential legal or policy changes that could affect profitability is crucial for investors considering healthcare stocks, to avoid blindly following trends at market peaks.
See More
